Have you ever shopped for renters insurance in Cary, NC? It’s a heavily populated area, and the demographic is mainly students and highly educated professionals. Not the sort of place where you’d think companies would worry about high losses or other issues that make insurance companies unwilling to write policies in a given area. But it’s often difficult to find Cary, NC Renters Insurance. Why?
Why is it hard to find renters insurance in Cary? There are a number of reasons – some of them may be up for changes in the future, and some of them are simply a function of geography. Let’s dig in a little deeper and find out why.
While it’s not the same as trying to find, say, Tampa, FL Renters Insurance, it can be difficult to find renters insurance in Cary, NC because there is a significant risk from storms. Admittedly, hurricanes don’t generally bring their full force down on Cary, but even the “leftovers” of a bad storm can cause significant damage from rain, wind, and other types of losses.
This weather risk is factored into the pricing of renters insurance in the area, of course, but that leads us to another problem that makes it difficult to find renters insurance here…
Cary, NC Renters Insurance is regulated by the state in a way that keeps prices artificially low. There are processes in place to be able to charge appropriately for additional risk, but they’re quite limited and make it difficult for carriers to break even in many situations.
This has led many companies to either not offer renters and homeowners insurance in North Carolina at all, to limit new business in certain parts of the state, or to simply require that property policies be bundled with something else, usually an auto. We’ve discussed these NC insurance pricing and regulation issues at great length elsewhere and again here and in the NC Renters Insurance Guide, so we won’t belabor the point.
Lack of Marketing
Above, we mention that many companies don’t want to write standalone property policies. While it’s difficult for a company to pull out of a state altogether, it’s not difficult to change underwriting standards to require an additional line of business. In addition, many companies do not market their renters insurance in NC to any great degree.
Whether it’s because they don’t want to write standalone Cary, NC Renters Insurance policies, or because they simply have a limited capacity for the amount of additional risk they can take on, marketing of property lines falls well below that in other states.
More specifically, non-uniform population density. In a city like Cary, you have a heavy concentration of people, but you don’t have to go very far outside the city to find very rural areas with very different types of risks.
Concentration of risk has an impact on the willingness of insurance companies to write certain types of policies within a state, especially when that risk is heavily concentrated in a number of urban centers. Balance is important to the exposure of an insurance company, and this affects the availability of coverage.
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